Nolans Bore Rare Earths Project
The Nolans Bore Rare Earths Project comprises the development of a rare earths mine and processing facilities (including beneficiation, extraction, and separation plants) 135km north of Alice Springs in the Northern Territory.
January 2024
Resources
Northern Territory
In January 2024, NAIF made an Investment Decision to provide up to $200 million in project finance to Arafura Rare Earths Ltd for the Nolans Rare Earths Project, located in the Northern Territory.
The Nolans Rare Earths Project aims to develop one of the world’s largest deposits of Neodymium and Praseodymium, two critical minerals essential for advanced technologies such as electric vehicle motors and wind turbines. Situated 135 kilometres north of Alice Springs, our finance will support the construction of critical mining and processing facilities, helping to establish a strategic rare earths supply chain and deliver substantial economic and community benefits to the region.
About Arafura Rare Earths
Arafura Rare Earths Limited (ASX: ARU) is an Australian company focused on the development of the Nolans Bore Rare Earths Project, a rare earths mine and processing operation designed to supply neodymium-praseodymium (NdPr) oxide, a key input in permanent magnets used in electric vehicles, wind energy, robotics, and defence technologies.
Arafura’s core business involves mining, beneficiation, extraction, and on-site processing to produce separated rare earth oxides, including NdPr.
Project Overview
Nolans Bore Rare Earths Project will mine and process one of the world’s largest deposits of Neodymium (Nd) and Praseodymium (Pr) over a mine life of at least 23 years. The Project uses a proprietary flowsheet to produce separated Nd and Pr oxides, as well as phosphoric acid as a by-product, thus improving project economics.
The Nolans Project will integrate mining, beneficiation, and rare earth processing on site to produce high-purity NdPr oxide and other rare earth products. This mine-to-oxide model supports Australia’s sovereign critical minerals capability by capturing more of the downstream value chain domestically.
The essential infrastructure to enable delivery of the broader project includes on-site water supply systems, power generation facilities supported by a hybrid renewable energy system, a gas pipeline, communications infrastructure, site access roads and an accommodation village.”
Arafura has established binding offtake agreements with global manufacturers including Hyundai, Kia, and Siemens Gamesa, and continues to progress commercial arrangements with additional parties across automotive and wind sectors. These partnerships support project bankability and provide long-term revenue certainty.
The company has also secured Major Project Status from the Australian Government and Major Project Status from the Northern Territory Government, indicating the strategic significance of the Nolans Project to Australia’s Critical Minerals Strategy.
The Nolans Bore Rare Earths Project is targeting initial NdPr oxide production of 4,440 tonnes per annum supplying around 5–10% of global demand once operational.
How We Helped
We approved up to $200 million in financing to support the delivery of critical enabling infrastructure for the Nolans Rare Earths Project, including water, power, roads, and communications.
Rare earths projects, such as Nolans, have historically faced difficulties in securing commercial debt funding due to the opaque nature of rare earth markets and their history of price volatility. This made our role as a gap financier particularly important in helping to de-risk the project and encourage private sector investment.
Working in collaboration with Export Finance Australia, our early commitment provided confidence to other stakeholders and helped crowd in additional support from international credit agencies and institutional investors.
The investment to develop a strategically important asset will help establish a rare earths ecosystem in Australia and has bolstered market confidence from international partners seeking reliable, transparent sources of critical minerals, and may encourage further investment in downstream processing.
Public Benefit
Independent analysis has concluded that the Nolans Bore Rare Earths Project brings significant opportunity to the Northern Territory in the form of training and development, local business procurement and regional income.
The forecast benefit of the project to the regional economy is $1,433m which includes an estimated Gross Territory Product (GTP) benefit of $828m (net of greenhouse gas emission cost) over construction and a 23-year operational life.
The Arafura Nolans Bore Rare Earths Project will deliver significant economic and community benefits, with a strong focus on local and Indigenous participation. The project is expected to generate 334 jobs in total with approximately 209 jobs during construction, and 125 ongoing operational jobs.
As the first rare earths separation plant in Australia, it is a key contributor to the Territory’s economic development and a strategic asset in expanding Australia’s critical minerals industry.
Indigenous Engagement
- The Anmatjere people
Anmatjere Country, located in Central Australia, north of Alice Springs, connecting to local communities of Ti Tree, Pmara Jutunta, and Laramba. The area is home to diverse desert communities, where Warlpiri, Anmatjere, and Eastern Arrernte are key languages spoken alongside English. Whilst each language is different, nearly all Aboriginal people living in the region can understand each other and are usually fluent in several languages. The Central Land Council (CLC) are the representative body for the Anmatjere Traditional Owners and play a key role representing Traditional Owners across the southern half of the Northern Territory – their responsibilities are grounded by the Aboriginal Land Rights (Northern Territory) Act 1976 and the Native Title Act 1993.
Indigenous Engagement Strategy Commitments
- Committed to ongoing engagement with the Anmatjere Traditional Owners and the Central Land Council (CLC) to establish culturally appropriate governance and communication frameworks throughout the project's lifecycle.
- Deliver cross-cultural training for its workforce, guided by the CLC and Traditional Owners, and is exploring flexible employment arrangements to accommodate cultural obligations.
- An aspirational goal of 20% local First Nations employment, supported by targeted training programs, a Graduate Development Program, and school-based apprenticeships.
- Conduct a skills audit to assess the readiness of local Aboriginal communities for employment, followed by the creation of a coordinated training and recruitment calendar.
- Collaborate with the CLC, Central Desert Regional Council (CDRC), and the Northern Territory Indigenous Business Network (NTIBN) to identify and support micro-business ventures led by Traditional Owners and local First Nations businesses.
- Contribute to local cultural events, educational programs, health and well-being initiatives, and leadership development activities, aiming to strengthen community ties and support cultural heritage.
Indigenous Engagement Strategy Outcomes
- Arafura are yet to commence reporting on their Indigenous Engagement Strategy commitments.
